In an age where cyber threats loom large, especially for small and medium-sized enterprises (SMEs), French startup Stoïk is stepping up to the plate with a game-changing cyber
In an age where cyber threats loom large, especially for small and medium-sized enterprises (SMEs), French startup Stoïk is stepping up to the plate with a game-changing cyber insurance product. Recently, Stoïk successfully raised €25 million (around $27 million) in a Series B funding round, positioning itself as a crucial player in the European cyber insurance landscape.
Unlike other players like Coalition and At-Bay that cater primarily to U.S. firms, Stoïk is laser-focused on the European market, addressing the unique challenges faced by businesses across the continent. With its innovative offerings, Stoïk aims to transfer cyber risks from SMEs to third-party insurance providers, providing much-needed peace of mind.
When businesses partner with Stoïk, they gain coverage against a wide array of cybersecurity-related claims. If an incident forces a company to halt operations or temporarily close its doors, Stoïk compensates for lost revenue—up to €7.5 million in coverage limits for firms with annual turnovers of €750 million or less.
Operating currently in France, Germany, and Austria, Stoïk is already addressing the complex nature of cyber insurance. The startup has even established an in-house crisis management team, ready to assist clients with data recovery and crisis communication during cyber incidents. Jules Veyrat, co-founder and CEO, noted that Stoïk has already responded to multiple attacks in its portfolio, including a significant ransomware assault on an industrial firm.
When clients sign up with Stoïk, they receive a comprehensive overview of their cyber risk exposure. The company actively monitors DNS records and scans online databases for potential password leaks associated with client domains. They also conduct internal scans to suggest improvements to cloud and active directory configurations.
“Our goal is to not only insure companies but also to help them enhance their defenses against cyber threats,” Veyrat explained. This dual approach benefits both the clients and Stoïk, leading to better protection and fewer claims over time.
Stoïk operates as a Managing General Agent (MGA), collaborating with established insurance and reinsurance firms to manage risk. This structure allows Stoïk to set its own rates and policies while outsourcing the underlying risk to larger insurers, such as Tokio Marine HCC International, the sole new investor in their recent funding round. Other notable participants include Alven, Andreessen Horowitz, Munich Re Ventures, Opera Tech Ventures, and Anthemis.
Stoïk does not sell directly to customers; instead, it partners with third-party insurance brokers who have established relationships with SMEs. Currently, the startup has attracted 1,000 brokers, with an ambitious goal of reaching 5,000 policyholders by the end of 2024.
Looking ahead, Stoïk has plans to expand into new European markets, aiming to add a new country each year starting in late 2024 or early 2025. With €25 million in premiums already represented, Stoïk is poised to ramp up its customer signups and solidify its position as a leader in European cyber insurance.
In a world where cyber incidents are becoming increasingly common, Stoïk is setting a precedent for how SMEs can protect themselves and navigate the complexities of cyber risk. As the landscape of cyber threats evolves, this innovative startup is ensuring that small businesses are not left in the dark.
